Canadian stock futures pointed to a higher open, despite caution among investors across the globe, ahead of a key gathering of central bankers that might give further clues on policy actions.
U.S. Federal Reserve Chairman Ben Bernanke is expected keep markets guessing about the timing of another round of bond purchases when he speaks on Friday in Jackson Hole, Wyoming, but he is likely to sustain expectations for action of some kind next month.
The S&P/TSX Composite index dropped 38.92 points to finish Tuesday at 12,009.90. Canada stock futures traded up 0.3% this morning.
The Canadian dollar improved 0.08 cents Wednesday morning to 101.28 cents U.S.
Shareholders in Canada's Progress Energy Resources Corp have approved a takeover bid from Malaysia's state oil company Petronas at $22.00 a share, or near $6 billion including debt.
On the economic slate, Statistics Canada reports that the Industrial Product Price Index was down 0.5% in July compared with June, due mostly to chemical products and motor vehicles and other transportation equipment. The Raw Materials Price Index rose 0.9%, because of higher prices for mineral fuels and vegetable products.
ON BAYSTREET
The TSX Venture Exchange faded 4.94 points to 1,241.88. The Nasdaq Canada fell 0.05 points to 347.88
ON WALLSTREET
U.S. stocks were headed for a weak open Wednesday as August winds down with many investors either on the sidelines or on vacation.
Futures for the Dow Jones Industrials gained 13 points, or 0.1%, to 13,099, about 30 minutes before the opening bell.
Futures for the S&P 500 nipped up 0.7 points to 1,408.50, and for the Nasdaq, futures gained 5.75 points, or 0.2%, to 2,786.50.
Volume has been at its lowest level in years with the only big news event scheduled for Friday, when Federal Reserve Chairman Ben Bernanke speaks in Jackson Hole, Wyo.. Many remain hopeful that he will give hints about new stimulus measures to give the U.S. economy a boost.
Meanwhile, oil prices continue to hover near $96 U.S. a barrel, as Hurricane Isaac curtailed oil production along the Gulf of Mexico. But gas prices jumped up 4.8 cents to $3.804 U.S. on Wednesday, according to the American Automobile Association. Gas prices are now up nearly 9% in August and at their highest level since early May.
Worries about Europe continue to keep investors on edge. Spain's recession is deepening, yet borrowing costs continued to ease. Along with Greece, Spain has become a thorn in investors' sides recently. Given its sluggish economy, high unemployment and troubled banking sector, many think the nation will be forced to seek a bailout soon.
European stocks slid in morning trading. Britain's FTSE 100 shed 0.5%, the DAX in Germany lost 0.6% and France's CAC 40 fell 0.7%.
Asian markets ended mixed. The Shanghai Composite fell 1% and the Hang Seng in Hong Kong edged lower 0.1%, while Japan's Nikkei added 0.4%.
Gold futures for December delivery fell $4.10 to $1,665.10 U.S. an ounce.
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